S&P cuts Brazil credit rating

Standard & Poor's cuts Brazil's sovereign debt rating to BBB-, the agency's lowest investment-grade rating, citing a combination of fiscal slippage, the prospect that fiscal execution will remain weak amid subdued growth in the coming years, a constrained ability to adjust policy ahead of the October presidential elections, and some weakening in Brazil's external accounts.

S&P changes its outlook to stable from negative, meaning further downgrades are unlikely for now.